Skip to main content

With a technique known as gift bunching, you can maintain your charitable impact while realizing potential tax benefits.

Many donors choose donor advised funds (called DAFs for short) as a flexible and efficient way to organize charitable giving.

With a DAF, you receive a potential tax deduction each year you give to your fund and then decide how to direct the funds over time, so you can support multiple nonprofits.

When you pair your DAF with a technique known as gift bunching, you can sustain your charitable impact while potentially maximizing your tax benefits.

Our Senior Vice President of Philanthropic Services, Jeremy Wells, explains the advantages of gift bunching in this video.

video poster

In the video, a donor clusters - or bunches - three years’ worth of charitable giving in one year into their DAF and takes the charitable deduction on their taxes that year. This allows them to itemize deductions.

They then recommend grants out of their DAF to the community causes they support over time. The donor takes the standard deduction in those years where they aren’t adding to their donor advised fund.

If you’d like to learn more about making the most impact with your charitable giving, please reach out to our Philanthropic Services team.

More Stories

Investing in the Future: Supporting Nonprofit Sustainability and Capacity Building

Investing in nonprofit sustainability is one of the most generous and strategic choices a donor can make.

Read part four

Inspiring Generosity in the Arts

At a recent Giving+Together event, art leaders addressed the economic and cultural benefits of the arts in our lives.

See the Highlights

Beyond the Check: Leveraging Your Voice to Advocate for Nonprofits

Whether you’re new to advocacy or looking to deepen your engagement, your personal advocacy matters — and you have many ways to get started.

Read part three

Warroad RiverPlace: Where Art Meets Community Engagement

Learn how one arts nonprofit is making art more accessible in Warroad.

Read the story

Amplifying Your Impact: Thoughtful Strategies for Increased Giving This Year

If you want to explore how your donor advised fund or other assets can have greater impact, the Saint Paul & Minnesota Foundation is here to support you.

Read part two

Understanding the Landscape: Identifying Urgent Needs in Our Community

Welcome to Activating in Critical Times, a four-part series from the Saint Paul & Minnesota Foundation.

Read part one

Dr. Eric Jolly's Parting Retirement Gift: Real Estate Gift Benefits the Community

Learn how our former Foundation President & CEO and his wife are using a gift of real estate to support agents of change.

Read the story

Chanda Smith Baker Named President & CEO of the Saint Paul & Minnesota Foundation

Meet the Foundation's New President & CEO in this letter to community from Board Chair Dr. Joseph Lee.

Read the news

GET MONTHLY STORIES, NEWS AND UPDATES

JOIN
US!

* Indicates a required field